~ Dynamics of Foreign Policy and Law ~ ~Dynamics of Foreign Policy and Law a study of Indo-Nepal Relations



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Conclusions
The political leaders who were propelled to power by the popular movement of the 1990s were not able to fully comprehend the benefits of the institution of a zone of peace for Nepal, seeing it simply as a policy of the panchayat system. They were too keen to placate India by abandoning the policy rather than persuading India to support it, as India too actually stands to gain by Nepal's being a zone of peace. For instance, India had to obtain from Sri Lanka, through the Agreement of July 1987, a guarantee that there would be no foreign military presence in Sri Lankan territories to the detriment of India's security interests.45 By contrast, Nepal had unilaterally bound herself to the fact that in no event would there be any foreign military presence in Nepal against the interests of other countries. By supporting the zone of peace proposal, India would have automatically obtained the assurance that she needs. An internationally recognized peace zone between India and China is an advantage for both these countries. A significant part of India's northern frontier would be secured, and India could thus significantly reduce her armed forces on this frontier. By supporting Nepal's proposal, India would be entitled to certain rights too, e.g. to complain if Nepal's activities were not compatible with the principles of its being a peace zone. In fact, India seems to have proposed in its 'secret' draft agreement presented to Nepal during the height of the Indo-Nepal 'cold war' of 1989/1990, a provision similar to that which Nepal was offering through the institution of a zone of peace: that is to say, that both countries should undertake not to enter into any military alliance with any other state to the detriment of each other. The difference here is that the idea of zone of peace sought to preclude Nepal from entering into any military alliance, while the Indian draft proposal sought to require
~ some form of a military alliance between Nepal and India while forbidding any other military alliance with any other states.
Notes and. References
1. 'Gasping for breath', Far Eastern Economic Review, 8 March 1990, 25.
2. See in A.S. Bhasin, Documents on Nepal's Relations with India and China 1949-66 (1970), pp. 13, 14.
3 Ibid., pp. 10-12.
4. Gisbert H. Flanz (eds), Constitutions of the Countries of the World: Nepal, vol. x (1985), pp. 1-2.
5. Douglas H. Chadwick and W. Thompson, At the Crossroads of Kathmandu', 172(1), National Geographic (1987) pp. 32, 65
6. See, generally, T.S. Rama Rao, 'The Himalayan Frontier Policy of India: A Historical Perspective', Indian Yearbook of International Affairs, xv-xvI (1966-7), p. 558.
7. The 1950 Treaty of Peace and Friendship.
8. The Treaty of 8 Aug. 1949 between India and Bhutan.
9. The Treaty of 6 Dec. 1950 between India and Sikkim.
10. India and the Soviet Union concluded a incorporating certain security matters. See 24773 for the Treaty of Peace, Friendship between India and the Soviet Union.
11. Chadwick and Thompson, op.
12. Flanz, op. cit., n. 4, p. 12.
13. Keesing's Archives of Contemporary World Events, vol. XXI (1975), p. 27062
14. Ibid.
15. Ibid., vol. xx (1974), p. 26778.
16. Ibid., vol. XXI (1975), p. 27062.
17. The king reorganized the National Planning Commission, established the National Development Council, set up a committee to recommend on constitutional reforms, etc.
18. B. Rana, HM King Birendras Peace Proposal for Nepal(Kathmandu: HMG/ Ministry of Communications, 1983), pp. 1—2.
19. Ibid.
20. Flanz, op. cit., p. 15.
21. Rana, op. cit., n. 18, pp. 3-4.
22. Personal communication.
23. Rana, op. cit., n. 18, p. 20.
24. Ibid.
~ 25. China and the US supported Pakistan in its war with India. This is described as one of the factors that brought China and the US closer than before. Dr Henry Kissinger visited Beijing in 1972, paving the way for President Nixon's .subsequent visit to China.
26. The Himalayan state of Sikkim was an Indian protectorate. Sikkim and India concluded a treaty of peace and friendship in 1950 which included provisions similar to those between India and Bhutan. See Keesing's vol xx (1974), pp. 26794, 26795.
27. From King Birendra's statement at the Fifth Non-Aligned Summit Conference in Colombo on 17 August 1976. See Rana op. cit., n. 18, p. 7.
28. Rana, op. cit., n. 18, p. 17.
29. Ibid., p. 18.
30. Ibid., p. 13.
31. S.C. Regmi, The Peace Zone Proposal of 'Nepal (1985), p. 47.
32. Rana, op. cit., n. 18, p. 14.
33. Rana, op. cit., n. 18, p. 28.
34. Ibid., p. 30.
35. Rana, op. cit., n. 18, p. 21.
36. Keesing's supra, n. 26, p. 1065.
37. Rana, op. cit., n. 18, p. 12.
38. Ibid.
39. Ibid., p. 14.
40. Official Records of the General Assembly Twentieth Session, First Committee, UN Doc A/c 1 SR 1423, p. 436.
41. Lauterpacht, The Development of International Law by the International Court (1958), p. 191, as cited in A D'Amato 'On Consensus' VIII, The Canadian Yearbook of 'International Law (197'0), 104, 108.
42. Supra, pp. 47—50. Black et al., Neutralization and World Politics (Princeton, New Jersey: 1968), pp. 49-50.
43. UN Doc, A/AC 159/180, 16 April 1988, para. 31.
44. T. Sagnier, 'Educating the "most beautiful children in the world", UN Chronicle, vol. XXIV, no. 4, Nov. 1987, p. 74.
45. Regmi, op. cit., n. 31, pp. 40—1.
~4 The Role or the United Nations in Resolving Trade and Transit Problems or Landlocked States and their Implications for Indo-Nepal Relations
Introduction
Of the total of 187 or so states in the world, 42 are landlocked,1 and their number2 has grown steadily over the past five decades with the increase in membership of the United Nations.3 This has been followed by a considerable growth of interest in the trade and transit problems of landlocked states, and this is likely to accelerate in the future, owing to the increase in the volume of international trade and economic activities in these states as well as the acute problems faced by them in this process.4 While many landlocked states in Africa and Asia are still fashioning their trade and transit relations with their neighbouring transit states, a dozen new landlocked states have emerged in Europe, Africa, and Central Asia following the break up of the Soviet Union. Several of these states appear to be in the process of reshaping their trade and transit relationships with their neighbouring transit states in order to secure freedom of transit and free access to and from the sea through the territory of their coastal and other transit neighbours. Indeed, one of the key rights that all parties sought to secure in the Dayton Peace Agreement of 1995 concluded between the former Yugoslav republics was the unfettered right of access to and from the sea and freedom of transit for them.5
International settlements, redrawing of international boundaries, the creation of new states out of a single state and, most significant of all, the de-colonization process, have all contributed to the emergence of new landlocked states. They vary in size, in political, economic, and military
~ strength, and in economic development. Although some of them are tiny enclave-type states such as San Marino and Lesotho, others are relatively large states such as Ethiopia, Mali, Kazakhstan, and Bolivia. Similarly, while landlocked states such as Nepal and Switzerland are strategically located, some others, such as Zambia and Kazakhstan, have the potential of themselves becoming regional powers. In terms of their economic development, most are developing, and sixteen of them are among the world's least developed countries. At the same time, a few landlocked states, such as Austria and Switzerland, enjoy a very high level of per capita income and are ranked among the most advanced developed countries. All of them, however, have one aspiration in common. Their common characteristic is their lack of a seacoast, and their common aspiration is to secure and preserve freedom of transit across their neighbour countries and a right of free access to and from the sea for their third-country trade (trade with countries other than their neighbours). This is because these states feel that their land locked ness has a negative impact on their eco­nomic and social development since they have to depend on their neighbouring states for most of their external economic activities, includ­ing the export and import of goods. It is in this context that this chapter examines the role played by the UN during the past five decades or so, not only in resolving the problems of landlocked states, but also in helping them to develop their economies, as they are among the most geographi­cally disadvantaged states in the world. In doing so, it will highlight the implications of the law developed by the UN for Indo-Nepal relations.
The Problem or being Landlocked
Unlike islands, atolls and peninsulas, which are natural features of the earth's surface, being locked is the result of political processes. National borders are drawn by people and not by nature. Contrary to popular belief, the problem of being landlocked is political and legal rather than geographic, requiring political and legal initiatives and solutions to the problem. Nepal's being landlocked state is a case in point. Although Nepal's border with Tibet runs largely through the Himalayas, the rivers originating there continue through the plains of Nepal to the Indo-Gangetic plains of India and ultimately reach the Bay of Bengal. Geographically, there is no reason for the division of this land mass into different states.
~ In ancient times, when the life of coastal people was made difficult by the seaborne forces of nature as well as by invading aliens and pirates, being landlocked was perhaps an advantage for the people living in the continental interiors. Later, when the world experienced phenomenal growth in international trade, landlocked states began to feel handicapped. Being landlocked can have a tremendous negative impact not only on commerce but also on other economic activities, as well as on the political independence of the state concerned. For instance, if foreign investors have to please state A in order to invest in state B, they will think twice before investing in state B. That is what is happening with regard to many landlocked states.
States have to become competitive to succeed economically. One way of becoming competitive is by offering efficient, cost-effective, and speedy transport. However, landlocked states can determine neither the suitability nor the availability of transport facilities beyond their borders. As stated in a recent UN conference on trade and development (UNCTAD) report on the problems of landlocked states,
The existence of an efficient, flexible and well-managed transit system is a necessary condition for the international competitiveness of most outward-orientated enterprises in landlocked developing countries. Moreover, the costs and risks of transit aggravate the foreign-exchange problems of landlocked developing countries by reducing the volume and value of exports and inflating the costs of imports. This situation is compounded by the fact that landlocked countries generally have to pay for transit services in foreign exchange.6
The report goes on to give specific examples of the magnitude of such foreign exchange squeeze and states that the export trade of many landlocked developing states 'is partly reduced because resources that could profitably be transformed into export commodities are left un-utilized as a result of transit cost disadvantages'. As Sinjela points out,
The long distance to and from the sea also raises transport costs for these states. For example, all things being equal, if two people—one in a landlocked state and the other in a coastal State—engage in a similar business enterprise, the person in a landlocked State would realize less in profits than the other because of the high transport costs incurred—costs which sometimes frighten away potential investors.7
This is one reason why most of the landlocked states of Asia, Africa, and Latin America have remained far behind in their efforts to develop their
~ economy and why many of them belong to the category of least-developed states. This aspect of the plight of landlocked states was rightly captured by UNCTAD in 1976 in the following passage:
Landlocked developing countries are generally among the very poorest of the developing countries. The lack of a territorial access to the sea, compounded by the remoteness and isolation from world markets, appears to be an important cause of their relative poverty, and constitutes a major obstacle to their development. Indeed, all but four of the 20 landlocked developing countries are on the list of countries identified by the United Nations as the least developed.8
This situation, described some 20 years ago, is still valid. Perhaps it has become even worse for many of these states with their increasing economic marginalization, internal environmental degradation, and the fall in the prices of their primary commodities in the world market. There was some hope for these states in the 1970s and 1980s when many people were euphoric about the idea of a New International Economic Order (NIEO) and the highly publicized potential benefits of the resources of the sea not only for coastal states but also for landlocked ones. However, all these expectations evaporated in the late 1980s and early 1990s as the ideas of distributive economic justice and a new world economic order were effectively shelved and the world was driven in the direction of greater marketization, liberalization, and privatization. This has resulted not only in less government within states but also in less international concern for or action on behalf of the less fortunate ones, including the landlocked states.
Even some of the gains made by these countries in the 1960s and 1970s have gradually been diluted or eroded altogether in the recent past. The NIEO is now virtually dead, and even the spirit of the 1982 UN Convention on the Law of the Sea (LOSC, 1982 Convention) was eroded by the 1994 Agreement Relating to the Implementation of Part XI of the Convention, which deals with deep seabed mining. First, the convention itself represented, as rightly described by Glassner, 'a disastrous loss for them [i.e., the landlocked states] in its provisions for access to the resources of the sea'.9
This is because the 1982 convention allowed the coastal states to claim a 200-mile exclusive economic zone (EEZ), an area that hitherto was part of the high seas and rich in resources, thereby leaving only the 'biological desert' of the deep sea for exploitation by all states, including the landlocked.
~ In effect, the introduction of the EEZ dramatically increased the distance between the high seas and landlocked states, making these countries more remote from the high seas. Second, whatever was achieved for developing countries in terms of its provisions relating to deep seabed mining under the 1982 convention was considerably watered down by the 1994 agreement.
What is more, international organizations dealing with development activities have gradually been forced out of business, and developing states, including some of the least-developed landlocked ones, have been told to compete on an equal footing with developed states in accordance with the spirit of the 'free play for all' rule established by the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) and supported by other international financial institutions such as the World Bank. These are the challenges that lie ahead for developing landlocked states. In order to be able to compete on an equal footing with other countries, the landlocked states need suitable infrastructures and liberal treatment from their transit states for their international trade. That is principally why landlocked states have long sought to have their freedom of transit and right of free access to and from the sea firmly established in international law and strengthened by the UN and its specialized agencies.
The Pre-UN Period
Early Writings
The origin of the freedom of transit concept can be traced to the writings of the seventeenth-century publicists. They believed that people had a natural right to traverse the territory of all countries for commercial purposes. The following statement of Grotius in his classic work De Jure Belli ac Pacis is an example:
Lands, rivers and any part of the sea that has become subject to the ownership of a people, ought to be open to those who, for legitimate reasons, have need to cross over them; as for instance, if a people ... desires to carry out commerce with a distant people.
Vattel held a similar view. He stated that the right of passage over foreign territory belonged to the category of 'rights which remain to all nations'.11
~ However, neither the writings of the publicists nor the multilateral treaties of the eighteenth and nineteenth centuries acknowledged any distinct status for landlocked countries. This situation was to remain unchanged until the post-First World War period in spite of the creation or recognition of some landlocked states by the Congress of Vienna of 1815 and the Treaty of Versailles of 1919. However, through Article 23 (e) of the Covenant of the League of Nations, the member states of the League undertook to 'make provision to secure and maintain freedom of communications and of transit and equitable treatment for the commerce of all members of the League'.
The Barcelona Statute on Freedom of Transit of 1921
In accordance with an undertaking specified in its Covenant, the League of Nations convened an international conference in Barcelona on 10 March 1921. On 20 April 1921, the Conference adopted, inter a lia, two important instruments: (1) the Convention and Statute on Freedom of Transit (commonly known as the Barcelona Convention), and (2) the Barcelona Declaration Recognizing the Right to a Flag of states Having no Sea Coast. Thus, for the first time in the history of international relations, the Barcelona Statute established a general freedom of transit for all states parties to the Barcelona Convention. This freedom was available whether the purpose of the exercise of this freedom was to reach the sea or another inland territory. Article 1 of the Barcelona Statute adopted the following definition of the term traffic in transit entitled to freedom of transit:
Persons, baggage and goods, and also vessels, coaching and goods stock, and other means of transport, shall be deemed to be in transit across territory under the sovereignty or authority of one of the contracting states, when the passage across such territory, with or without trans-shipment, warehousing, breaking bulk, or change in the mode of transport, is only a portion of a complete journey, beginning and terminating beyond the frontier of the state across whose territory transit takes place.
Article 2 of the Statute provides for free and non-discriminatory transit across the territory of the contracting parties:
Subject to the other provisions of this Statute, the measures taken by Contracting States for regulating and forwarding traffic across territory under their sovereignty or authority shall facilitate free transit by rail or waterway on routes in use
~ convenient for international transit. No distinction shall be made which is based on the nationality of persons, the flag of vessels, the place of origin, departure, entry, exit or destination or on any circumstances relating to the ownership of goods or of vessels, coaching or goods stock or other means of transport.
In order to ensure the application of the provisions of this Article, contracting states will allow transit in accordance with customary conditions and reserves across their territorial waters.12
Evaluation of the Barcelona Convention and Statute
As outlined in a UN report, the Barcelona Statute views transit 'as a non-self-executing right, since its existence and its extent are subject not only to the consent of but also to an arrangement with the transit states'. More­over, although the statute appears to regard transit as a right' as opposed to a 'privilege' granted unilaterally by the transit state, 'it is, however, clear that such a right is subject to reciprocity'. The UN report sums up the deficiencies of the Barcelona Statute as follows:
(a) One such deficiency was inherent in the Statute itself, in that most of the participants originated from Europe, thus ignoring similar problems which could be encountered in other parts of the world, such as in the colonies of the European Powers. In fact, Article 14 of the Statute stipulates that as a matter of principle the provisions of the Statute do not apply 'where a colony or dependency has a very long frontier in comparison with its surface and where in consequence it is particularly impossible to afford the necessary customs and police supervision';
(b) Proceeding in part from the previous argument, it appears that the right of transit, as it was viewed in the Barcelona Statute, was not a universal principle established once and for all but was rather the result of a temporary agreement between a few states;
(c) Being limited to two modes and means of transportation, namely railways and waterways, the Barcelona Statute did not take into account other means of transportation such as road, sea, lake, and river craft, as well as porters and pack animals.13
What is more, the statute gives quite broad discretionary powers to the transit state for the protection of its legitimate interests without defining what this term means. However, in spite of such deficiencies, the Barcelona Statute can be considered a landmark document for institutionalizing the right of transit of all states and in particular of those that are landlocked.
~ Furthermore, it was the Barcelona Conference, which recognized through a separate declaration the right of landlocked states to sail ships under their own maritime flag, and some have done so.
The United Nations Era
In the early years of the UN, the Barcelona approach lingered on, and international instruments dealing with freedom of transit draw no dis­tinction between the needs of landlocked and other states. Yet, soon the international community began recognizing the special needs of landlocked states and dealing with this topic as such. A great deal has been done within the UN framework for the landlocked countries during the past four decades. It is no longer just an international legal issue. It has been considered within a broad spectrum of activities of the UN, its specialized agencies, and other international organizations and fora, ranging from international trade and aid to transportation, shipping, and the Law of the Sea. Therefore, it is proposed to deal with the developments of the past five decades under a number of headings and subheadings.
Freedom or Transit for International Commerce International Economic Cooperation under the UN Charter
Two major issues dominated the thinking of those instrumental in creating a new international order in the aftermath of the Second World War. One was to avoid another catastrophic war, the other to promote universal economic and social progress for all states. Whereas the first objective was to be achieved through the collective security system envisaged in the UN Charter, the other was to be achieved through economic cooperation among the members of the UN in accordance with Chapter IX of the charter. Article 55 states that with a view to the creation of conditions of stability and well-being which are necessary for peaceful and friendly relations among nations, the UN shall promote, inter alia, conditions of economic and social progress and development for all states. All member states of the UN pledged themselves in Article 56 of the Charter 'to take joint and separate action in cooperation with the organization for the achievement of the purposes set forth in Article 55'.14
~ Freedom or Transit within GATT
It was in this spirit that the Bretton Woods institutions (the International Bank for Reconstruction and Development (IBRD or World Bank) and the International Monetary Fund (IMF), and the GATT were created in the immediate aftermath of the establishment of the UN. The 1947 General Agreement on Tariffs and Trade (outside but linked to the UN system) deals with freedom of transit in its Article V:
1. Goods (including baggage), and also vessels and other means of transport, shall be deemed to be in transit across the territory of a contracting party when the passage across such rerritory, with or without trans-shipment, warehousing, breaking bulk, or change in the mode of transport, is only a portion of a complete journey beginning and terminating beyond the frontier of the contracting party across whose territory the traffic passes. Traffic of this nature is termed in this article 'traffic in transit'.
2. There shall be freedom of transit through the territory of each contacting party, via the routes most convenient for international transit, for traffic in transit to or from the territory of other contracting parties. No distinction shall be made which is based on the flag of vessels, the place of origin, departure, entry, exit or destination, or on any circumstances relating to the ownership of goods, of vessels or of other means of transport.15
Although the provisions of the GATT do not depart significantly from those of the Barcelona Statute on Freedom of Transit, there are two principal differences. The Barcelona Statute includes persons as well as goods in the definition of traffic in transit, but the GATT definition is restricted to the passage of goods. Insofar as means of transportation is concerned, the GATT article, unlike the Barcelona Statute, includes not only traffic along railways and navigable watercourses, but also all means of land transportation. However, like the Barcelona Statute, there is no mention of our special consideration for the needs of landlocked states in Article V of GATT. All parties to the GATT enjoy this freedom of transit on the basis of reciprocity.
The Havana Charter
The Havana Charter for an International Trade Organization, adopted in 1948, was the next international instrument dealing with international
~ trade after the GATT. Although the charter never came into force, it contained provisions recognizing the special situation of landlocked states, the first ever in an international instrument. Articles 10 and 33 of the Havana Charter dealt with freedom of transit of landlocked states. Although Article 33 closely followed the language of Article V of GATT, an interpretative note attached to it contained some interesting elements:
If, as a result of negotiations in accordance with paragraph 6, a Member grants to a country which has no direct access to the sea more ample facilities than those already provided for in other paragraphs of Article 33, such special facilities may be limited to the landlocked country concerned unless the Organization finds on the complaint of any other Member, that the withholding of the special facilities from the complaining Member contravenes the most-favoured-nation provisions of this Charter.
Moreover, Article 10 stipulated that 'facilities and special rights accorded by this convention to landlocked states in view of their special geographical position are excluded from the operation of the most-favoured-nation clause [MFN]'.17
The Role of ECAFE
Direct involvement of the UN and its specialized agencies in the problem of being landlocked began in the mid-1950s. A 1956 report of the Committee on Industry and Trade of ECAFE (the United Nations Economic Commission for Asia and the Far East) recommended that 'the needs of landlocked member states and members having no easy access to the sea, in the matter of transit trade be given full recognition by all member states and that adequate facilities therefore be accorded in terms of international law and practice in this regard'.18 The General Assembly of the UN heeded this message and adopted a resolution in 1957 endorsing and reiterating the recommendation of the committee.19
As we shall see later, it was actually the work of ECAFE that led to the adoption of an international convention devoted solely to the transit trade problem of landlocked states in 1965. Meanwhile, a resolution adopted at the Ministerial Conference on the Asian Economic Cooperation held in 1963, recognized the 'right of free transit for landlocked countries and the special considerations which apply to their transport and transit problems and the importance of the relationship of these problems to questions of regional cooperation and expansion of intra-regional trade'.20
~ The Role of UNCTAD
Chiefly as a result of the efforts made within ECAFE, a subcommittee on landlocked countries was established at the UN Conference on Trade and Development (UNCTAD) held from 23 March to 16 June 1964 'to consider the proposal for the formulation of an adequate and effective international convention, or other means, to ensure the freedom of transit trade of landlocked countries and to formulate recommendations on this matter for consideration by the committee'.21
Once the subcommittee's work had been completed, UNCTAD adopted a set of eight principles for landlocked states, which provided the basis for a separate convention on their transit trade and was adopted in 1965. In Principle I, UNCTAD stated that 'the recognition of the right of each landlocked state of free access to the sea is an essential principle for the expansion of international trade and economic development'. Principle IV dealt with freedom of transit:
In order to promote fully the economic development of the landlocked countries, the said countries should be afforded by all states, on the basis of reciprocity, free and unrestricted transit, in such a manner that they have free access to regional and international trade in all circumstances and for every type of goods.22
The same conference also adopted a recommendation on the preparation of a convention relating to transit trade of landlocked states and called upon the UN to convene an international conference on the subject in 1965. Accordingly, an international conference was convened at the UN Headquarters under the auspices of UNCTAD from 7 June to 8 July 1965. The Conference adopted a landmark Convention on Transit Trade of Landlocked States.
The United Nations Convention on Transit Trade of Landlocked States
The 1965 United Nations Convention on Transit Trade of Landlocked States significantly strengthened the freedom of transit of such states. Its preamble restates and reaffirms the eight UNCTAD principles of 1964 mentioned above. The main text includes quite a few other innovative provisions relating to landlocked states. For instance, Article 1 includes not only the passage of goods but also the passage of unaccompanied
~ baggage in the definition of 'traffic in transit'. Similarly, it provides for quite a broad definition of the term means of transport to include, conditionally, even pipelines. Perhaps the most important of all is the guarantee in Article 2: 'Freedom of transit shall be granted under the terms of this Convention for traffic in transit and means of transport'.
There are two other noteworthy provisions in the convention. One is Article 4, which requires states parties 'to provide, subject to availability ... adequate means of transport and handling equipment for the movement of traffic in transit without unnecessary delay'. The other is Article 7, which requires states parties to take all measures 'to avoid delays in, or restrictions on, traffic in transit'. It goes on to state that 'Should delays or other difficulties occur in traffic in transit, the competent authorities of the transit State or States and of the landlocked State shall cooperate towards their expeditious elimination'. Last but not least important is the compulsory dispute settlement provision of Article 16: Any dispute which may arise with respect to the interpretation or application of the provisions of this Convention which is not settled by negotiation or by other peaceful means of settlement within a period of nine months shall, at the request of either party, be settled by arbitration.'
In many other respects, however, this convention repeats the language and substance of the Barcelona Statute and GATT Article V. It, too, accepts the principle of reciprocity, does not define the 'legitimate interests' of transit states, and requires a bilateral agreement with the transit state on the actual modalities of transit. Moreover, the effectiveness of this convention is rather limited as only very few transit states have ratified it. Thus, it is difficult to state that this convention created an unfettered universal right of landlocked states to freedom of transit across the territory of transit states.
The Right of Free Access to and from the Sea
As landlocked states are handicapped by not having seacoasts, their primary-concern has long been to secure the right of free access to and from the sea. Although the 1921 Declaration Recognizing the Right to a Flag of States Having no Sea Coast adopted by the Barcelona Conference and the 1923 Geneva Convention and Statute on the International Regime of Maritime Ports deal with certain maritime rights of landlocked states, their main efforts to secure the right of free access to and from the sea have taken place within the context of the developing international Law of the Sea.
~ This was only natural as they need not only international trade but also the other freedoms of the high seas and the exploitation of the resources of the deep seabed to which they have rights equal to those of coastal states. Accordingly, it is within the context of the Law of the Sea that both the rights of access and freedom of transit have been dealt with since freedom of transit has been viewed as a natural corollary of right of access.
The difference is that whereas freedom on transit as found in the Barcelona Statute and GATT is a substantive principle in its own right, the freedom of transit designed to realize the right of free access to and from the sea has been viewed only as a procedural rule. Accordingly, the efforts of landlocked states in various Law of the Sea fora have been to secure the right of free access to and from the sea in the belief that once this right has been secured, freedom of transit will naturally flow from the right of free access.
The other reason for this emphasis on the right of access is that as freedom of transit has traditionally been viewed as a freedom available to all states on the basis of reciprocity, a claim by landlocked states to the right of free access to and from the sea by virtue of their being landlocked would not raise the issue of reciprocity. This would be a right available unilaterally to landlocked states as they need this right not only for international commerce but also to enjoy other freedoms of the high seas and to be able, at least in principle, to take part in the exploitation of the natural resources of the deep seabed.
The First United Nations Conference on the Law of the Sea
For the first time in the history of the UN, the General Assembly in its Resolution 1105 (XII) of 21 February 1957 convoking a UN Conference on the Law of the Sea recommended that the forthcoming conference 'should study the question of free access to the sea of landlocked countries, as established by international practice of treaties'. Accordingly, the conference assigned this subject to its Fifth Committee for consideration, and the result of the deliberations during the conference is Article 3(1) of the UN Convention on the High Seas, which reads as follows:
In order to enjoy the freedom of the seas on equal terms with coastal states, states having no seacoast should have free access to the sea. To this end states situated between the sea and a state having no seacoast shall by common agreement with the latter, and in conformity with existing international conventions, accord:
~ (a) To the state having no seacoast, on a basis of reciprocity, free transit through their territory; and
(b) To ships flying the flag of that state treatment equal to that accorded to their own ships, or to the ships of any other states, as regards access to seaports and the use of such ports.23
This provision marked the first recognition of the special needs of land­locked states in an international treaty of universal character (indicated by the preamble, which states that the provisions of this convention are declaratory of customary international law). However, the weak language coupled with the word 'should', the requirement of reciprocity, and the explicit requirement of a bilateral agreement with the transit state to make the right of free access effective attracted criticism from landlocked states. It broadly reflected the various provisions of previous treaties dealing with such states. The weaknesses outlined above with regard to the Barcelona Statute were not remedied by this convention. The rights of landlocked states still remained non-self-executing and dependent on the goodwill of transit states.
For these reasons, the landlocked states sought a separate convention dealing with their problem, and the result of that effort was the 1965 UN Convention on Transit Trade of Landlocked States, discussed above. As even this document did not fully satisfy the concerns of landlocked states, they kept pressing for a more satisfactory international legal regime dealing with their rights during the nine years of negotiations in the Third UN Conference on the Law of the Sea (UNCLOS III).
The Third United Nations Conference on the Law of the Sea
As the Second UN Conference on the Law of the Sea held in 1960 failed to achieve anything significant, we pass directly to the third such conference, for which preparatory work was entrusted to the UN Committee on the Peaceful Uses of the Seabed and the Ocean Floor beyond the Limits of National Jurisdiction (the Seabed Committee) established in 1968. It was in this Committee that the problems of landlocked states were discussed after 1970. The famous Common Heritage Declaration of the UN General Assembly (Resolution 2749 (XXV) of 17 December 1970) stated in Paragraph 5 that the deep seabed 'shall be open to use exclusively for peaceful purposes by all states whether coastal or landlocked without discrimination'.
~ This was followed by a number of General Assembly resolutions, various studies of the secretary-general and several reports of various committees on the problem of landlocked states and their participation in the future mining of deep seabed resources. There were other activities that occured throughout the 1970s within other UN agencies such as ECAFE and UNCTAD relating to landlocked states, which sought to supplement and complement the activities of the committees and sub-committees of UNCLOS III.24
During the nine years of negotiations in UNCLOS III, a number of proposals were put forward by individual states, both landlocked and transit, as well as by groups of states, outlining their negotiating positions. While the landlocked states were keen to secure an unfettered right of free access to and from the sea, many transit states were anxious to have their sovereignty and territorial integrity preserved and not affected by the demands of landlocked countries. One other strongly contested issue between the landlocked and transit states was the question of reciprocity. The landlocked states insisted that reciprocity must be the basis for any cooperation between them and transit states. For instance, a document submitted to the conference by a group of landlocked states made the following comments on this question:
As is known, the 1958 Convention on the High Seas in its Article 3, and in similar terms the 1965 New York Convention on the Transit Trade of Landlocked States in its Article 15, have secured to landlocked states the freedom of transit 'on a basis of reciprocity'. These provisions were apparently based on a wrong supposition that both the landlocked countries and the transit states have comparable positions and identical needs for transit. This is however not the case, for the purpose of free transit of landlocked countries is just that of ensuring them the exercise of their right of access to and from the sea.
In Article XVI, the present draft declares therefore that 'reciprocity shall not be a condition of free transit of landlocked states' the fulfilment of which might be required by transit states in favour of their own transit to any other country, for it would not be necessitated by the need for access to the sea. Such conditions would not be just, in particular, in relation to those landlocked countries which are surrounded by several transit states'.25
However, as the aim of UNCLOS III was to adopt a convention on the Law of the Sea by consensus, it was necessary for all individual states as well as various groups of states to adopt a 'give and take' policy during the
~ negotiations. The negotiated provisions on landlocked states of the 1982 UN Convention on the Law of the Sea are contained in Part X, Articles 124—32. Perhaps the most important of these articles is Article 125:
1. Landlocked States shall have the right of access to and from the sea for the purpose of exercising the rights provided for in this Convention including those relating to the freedom of the high seas and the common heritage of mankind. To this end, landlocked States shall enjoy freedom of transit through the territory of transit States by all means of transport.
2. The terms and modalities for exercising freedom of transit shall be agreed between the landlocked States and transit States concerned through bilateral, sub-regional or regional agreements.
This article does four important things. First, it guarantees the right of free access to and from the sea to landlocked states. Second, it also guarantees to them freedom of transit without any qualification if this freedom is to be exercised in relation to the right of free access to and from the sea. Third, it does not require a bilateral treaty with the transit state to be able to exercise the right of free access and freedom of transit. Only the detailed provisions of a technical character regarding the terms and modalities for exercising freedom of transit have to be agreed upon with the transit state. However, the actual right to exercise this freedom is itself no longer dependent on a bilateral agreement with the transit state. Fourth, breaking from the Barcelona tradition, it eliminates the requirement of reciprocity.

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